Chase bank rolls out 'smart' credit card
The new "smart" credit card is intended to appeal to frequent travelers who may experience hiccups with U.S. credit cards overseas. Credit: iStock
Chase Bank is rolling out a credit card embedded with a "smart" chip technology that reduces fraud and is already widely used outside the United States.
The British Airways co-branded card is intended to appeal to frequent travelers who may experience hiccups with U.S. credit cards overseas. It has a $95 annual fee.
The United States is the only developed country still primarily using credit and debit cards with magnetic strips. The rest of the industrialized world has already switched, or is transitioning, to chip-based cards.
Chip-based cards aren't swiped like cards with magnetic strips. Users insert the cards into a slot then punch in a PIN code to complete a transaction. In certain circumstances, such as train ticket kiosks, credit cards with magnetic strips can't be read.
Earlier this year, Chase introduced two other cards with chip technology. The J.P. Morgan Select card has a $95 annual fee after the first year and the Palladium card, which offers a 24-hour concierge service and travel perks such as unlimited airport lounge access, has a $595 annual fee.
Other banks began experimenting with the newer technology this summer. U.S. Bank gave 20,000 of its travel rewards customers cards with the chip. Wells Fargo & Co. started testing the chip technology with 15,000 customers. Wells says the response has been overwhelming, and it plans to roll out the chip-based cards more widely.
